EU, China In Talks To Set Minimum Prices On Imported EVs

German media outlet Handelsblatt reports that China is shifting its focus towards prioritizing negotiations with the European Union to eliminate tariffs on electric vehicles. This strategic move comes as the ongoing trade war between the US and China intensifies, making expansion into the American market increasingly difficult.
As a result, China is now concentrating its efforts on urging the EU to lift the tariffs it imposed on Chinese electric vehicle imports late last year.



Following an anti-subsidy investigation that began in 2023, the European Commission started to impose provisional countervailing duties on Chinese EV imports on October 31, 2024.

These duties, which are in addition to the EU's standard 10% import charge, vary from 7.8% on Tesla's Shanghai-built vehicles to 35.3% on models made by state-owned SAIC Motor, the owner of the MG brand. BYD and Geely's rates are 17.0% and 18.8%, respectively.



EU Trade Commissioner Sefcovic and China's Commerce Minister Wang agreed on Thursday to look into the potential of setting minimum prices for imported EVs as an alternative to tariffs.

For the record, the EU had previously rejected a Chinese proposal for a €30,000 minimum price, arguing that the issue goes beyond pricing and needs to address underlying subsidies.


Discussions between the European Union and China on new price undertakings have restarted, marking a break from a stalemate that occurred late last year. This development correlates with an influx of Chinese automakers into the European market.

Established companies such as BYD, Nio, XPeng, and Zeekr have been selling electric vehicles in Europe for several years, and they are now being joined by newcomers such as Changan Group's Avatr and Deepal, GAC's Aion, and Chery Auto.


China and the European Union have agreed to restart negotiations as soon as possible. The goal is to foster a more favorable environment for investment and cooperation between Chinese and European businesses, according to an announcement made by China's Ministry of Commerce last week.

In January, SAIC, BYD, and Geely submitted a challenge against the measures to the European Union's Court of Justice. Beijing has consistently opposed the tariffs, asserting that they are discriminatory and politically motivated.


In an attempt to have the EU's countervailing charges overturned, China lodged a formal complaint with the World Trade Organization in late 2024.